New SIPP with ii..... Passive fund choices!!

Donewithwork1

LHW99 said:

Donewithwork1 said:

LHW99 said:

And if you don't expect to immediately need the majority of the pension beyond the first £75k, you could consider putting half of the remainder into something with higher equity (than the VLS60 or equivalent) - as you would probably not need to touch that for 10+ years.

Thanks, good point and I am thinking about that tbh.  After the 75K maybe the remainder at 50% in a 60/40, 25% in 80/20 and 25% at 100% or is that brave, or stupid or both!! 

You might find the 100% equity a bit of a roller coaster ride - I believe it is said that could drop by 50% at least once during a 30 year retirement.

80/20 will be more volatile than 60/40, but probably more bearable than 100% equity IMO

Thanks LHW, I tend to agree.  Not saying I will, just floating ideas in my head at 4am this morning! 

handful

Donewithwork1 said:

handful said:

I'm in a situation that is similar but with my OH not as well off as yours! In terms of a strategy though I have similar plans, taking out our PA each year until SPA. If you have >£200k in safe savings then I would have more in equities. But that's me with my risk profile. I have 2 years in Royal London STMM which I will keep there whilst taking dividends /selling some other investments to fund my annual withdrawal.  

Thanks handful, at least I'm not alone with these thoughts.  Tbh I'm not chasing after maximum possible returns as such, just want returns that will allow a reasonable drawdown keeping up with inflation and any charges if I need it and allow it to last my lifetime if possible.

Out of interest, how do STMM's work? Could I buy into this in my SIPP and then crystallise that element to drawdown as and when?  How is interest paid into it?

Interest is added daily, for my £25k it's usually around £4-5 per day. So my investment, made on 14th November is now worth £25,363.20 as of today.

SVaz

My Royal London STMM pays out bi-annually, I had a payment in December so presumably June is the next one.  

The ‘value’ goes up until the dividend is paid, then it resets / starts to grow again. 

Donewithwork1

SVaz said:

My Royal London STMM pays out bi-annually, I had a payment in December so presumably June is the next one.  

The ‘value’ goes up until the dividend is paid, then it resets / starts to grow again. 

Thank you SVaz